- Construction of contract
This chapter studies the prohibitions on assignment. Depending on how it is framed, a prohibition on assignment can have a number of different effects. This will always be a question of construction. For example, a clause that appears to be directed towards prohibiting assignment may in fact prohibit only novation, or sub-contracting, or only outright assignments and not assignments that are executed by way of security. Likewise, a prohibition on assignment has been held to extend even to the grant of a charge, notwithstanding the fact that a charge is distinct from an assignment. In the specific context of prohibitions on assignment, at least four different types of term were identified. The chapter looks at these various possible terms, and their validity and enforceability.